We are often asked why we don’t participate in clearance sales or Black Friday. Our answer: Because attractive discounts encourage excessive consumption, which has negative consequences for the environment. Our prices remain the same throughout the year because we operate with low profit margins. This allows us to pay everyone involved in the production chain fairly. For this reason, we cannot offer discounts. We explain why in more detail in the following article.
What is a fair price?
A price is truly fair when consumers pay a price that is commensurate with the product's quality and when all workers involved in its production are fairly compensated.
At Kipli, we strive to offer our customers the best value for their money. The Kipli natural latex mattress costs about half as much as a mattress of comparable quality sold in brick-and-mortar stores. The Kipli mattress is therefore priced as close as possible to the customer’s purchasing power.
To achieve this, we operate on low margins, as the procurement and processing of high-quality raw materials, as well as fair compensation for all workers, involve high costs.
To determine the selling price, we add the gross margin to the production costs. This margin consists of fixed costs, taxes, and the profit generated from the sale (net margin). At Kipli, the net margin on a mattress sold is 7%.
A fair price is therefore a matter of values. A fair price is also a price that is close to the product's cost price.
Why do we take fair prices for granted?
In light of the new development challenges, it is of the utmost importance for us to act responsibly and to commit to better trade. As you know, there are still practices in global trade whose ethics are widely questioned. For example, the pursuit of profit leads many companies to ignore working conditions—as well as the sometimes shockingly low wages paid to those involved in the production process and/or the transportation of their products.
Kipli is among those who believe that a company, regardless of its size or line of business, bears social and environmental responsibility. For Kipli, ensuring fair prices is a way to take on that responsibility and give as many people as possible access to high-quality, sustainable, and eco-friendly products. In this way, Kipli stands in contrast to the “race to the bottom on prices.” Companies are constantly driving prices down through promotional campaigns to attract consumers. The result is a whirlwind of crossed-out prices, illegible rates, and implausible discounts that make it difficult and opaque for customers to compare offers.
What's really behind a price? How do brands manage to sell their products at bargain prices during sales?
Kipli attempts to shed light on a practice that often leads companies to compromise product quality in order to maintain their profit margins.
Your Kipli Team